LightSquared's Bankruptcy Bills Hit $1.3B

May 19 2014 | 11:25am ET

Harbinger Capital Partners' wireless internet venture doesn't have an approved restructuring plan, but it does have expenses, which continue to pile up as the company awaits an exit from bankruptcy and approval of its planned network.

LightSquared, which has been in bankruptcy protection for two years, spent $55.4 million in April, it said in a court filing. Most of the money—$36.9 million—went to debt payments, with another $4.6 million to lawyers and others working on the bankruptcy case and $1.3 million to pay its staff.

All told, LightSquared has spent $1.3 billion since filing for bankruptcy.

Earlier this month, U.S. Bankruptcy Judge Shelley Chapman rejected LightSquared's restructuring plan, which is backed by Fortress Investment Group. She ruled that the proposal was unfair to LightSquared's largest creditor, Dish Network Chairman Charles Ergen, while also finding that Ergen had improperly purchased the debt and should have some of his claims subordinated.

Chapman ordered both side to sit down and come up with a new plan by May 27, threatening to impose mediation if they fail to reach accord. The judge cited the continuing costs of the case for the urgency.

LightSquared is still awaiting federal approval to deploy its wireless network. The Federal Communications Commission rejected its original plan, citing interference concerns with global positioning systems.


In Depth

Exotic Assets: Investing In Rare Violins

Jan 17 2017 | 4:43pm ET

By definition, alternative investments include exotic assets far beyond your typical...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

The Trump Administration: What It Could Mean for Carried Interest

Jan 19 2017 | 5:25pm ET

The arrival of the Trump administration brings the potential for a repeal of the...